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F5 Networks (FFIV) Closes Threat Stack Buyout, Boosts Portfolio

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F5 Networks (FFIV - Free Report) recently concluded the previously announced buyout of the Boston-based cloud security and compliance start-up, Threat Stack. The company acquired all the issued and outstanding shares of the privately-held start-up for cash worth $68 million.

The acquisition, which was announced in September, is likely to broaden F5 Networks’ cloud security portfolio, thereby enhancing its capabilities and expertise in providing visibility and protection across its application infrastructure and workloads. The buyout is anticipated to strengthen the company’s competitive position in enterprise application security and delivery services.

Threat Stack provides cloud-native application protection, along with real-time threat detection for cloud infrastructure and workloads. Founded in 2012, the private company’s Cloud Security Platform helps organizations monitor, detect, and respond to security and compliance risks. The platform is compatible across hybrid and containerized environments as well.

With Threat Stack, F5 Networks will ensure comprehensive observability, thus enabling proactive risk identification and real-time threat detection throughout all of its applications.

Acquisitions: A Key Growth Drive

In recent years, acquisitions have been crucial to F5 Networks’ growth. Such transactions not only enhance the company’s security capabilities but also raise its market share. In January 2021, it acquired Volterra, a privately-held edge-as-a-service platform, for nearly $500 million worth cash.

Prior to that, in December 2019, it acquired Shape Security for $1 billion and NGINX in March 2019 for $670 million. These buyouts have fortified the company’s position across multiple sectors, such as cybersecurity, application security, enterprise networking and cloud infrastructure.

Zacks Rank & Key Picks

F5 Networks currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include Square (SQ - Free Report) , Avnet (AVT - Free Report) and Nikon (NINOY - Free Report) , all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Square, Avnet and Nikon is currently pegged at 31.4, 25.4% and 51.6%, respectively.


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